Question: On January 1 2014 Trucks R Us Corporation issued 2 000 000

On January 1, 2014, Trucks R Us Corporation issued $2,000,000 in bonds that mature in five years. The bonds have a stated interest rate of 10 percent and pay interest on June 30 and December 31 each year.When the bonds were sold, the market rate of interest was 10 percent.

Required:1. What was the issue price on January 1, 2014?2. What amount of interest expense should be recorded on ( a ) June 30, 2014? and ( b ) December 31, 2014?3. What amount of cash interest should be paid on ( a ) June 30, 2014? and ( b ) December 31, 2014?4. What is the book value of the bonds on ( a ) December 31, 2014? and ( b ) December 31, 2015?